Sen. George Voinovich calls this a” much needed Christmas present to many Ohioans.” This law is all about tax forgiveness on any loan amount that is forgiven on someone’s mortgage, or any foreclosed property.
“….The Internal Revenue Service currently taxes any loan forgiveness as “income.” The Mortgage Relief Act relieves families of a tax burden when their lender forgives part of the mortgage on a principal residence, whether as part of a work-out, a short sale, or a foreclosure….”
Sobering statistic from the press release is not news but still stings to see it in print: Ohio has the highest foreclosure rate at 3.7%. This Bill has been in the works since May and was finally approved as a temporary measure, and will be in effect until the end of 2009.
As Lou Tisler of Neighborhood Housing Services of Greater Cleveland said,
“Though there is not a silver bullet for this crisis, it will take actions and legislation such as this to lessen the effects of the foreclosure crisis on our residents and our communities.”
You can read the entire press release here. Peace Out – 3C
0 responses so far ↓
1 Elaine Reese // Dec 23, 2007 at 4:19 pm
I suppose that tax law was originally designed to prevent investors from easily writing off their losses. (remember, I’m not as savvy politically as you are)
But to have that law in existence where these people who have just lost their home, have to pay tax on it was just wrong. Glad Voinovich got it through.
2 Carole Cohen // Dec 23, 2007 at 4:56 pm
It’s like the high late fees on late mortgages, or 29% interest on late credit card purchases; it snowballs and if you have no money, how can you pay? I’m glad too Elaine
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